Finance, Development, and the IMF

Transcription

1 Finance, Development, and the IMF James M. Boughton and Domenico Lombardi (Editors) OXPORD UNIVERSITY PRESS

2 List of Abbreviations xii Part I. Introduction 1. The Role of the IMF in Low-Income Countries 3 fames M. Boughton (IMF) and Domenico Lombardi (Oxford University and Brookings Institution) I. Introduction 3 II. History and nature of the role of the IMF in low-income countries 5 III. IMF policies and financing in low-income countries 6 IV. The role of low-income member countries in the governance of the IMF 9 V. Concluding observations 10 Part II. History and Nature of the Role of the IMF in Low-Income Countries 2. Bretton Woods and the Debate about Development 15 Harold James (Princeton University) I. Introduction 15 II. Bretton Woods 15 III. The clash of ideas 19 IV. The sociology of politics 24 V. Managing the international financial system 29 VI. Approaching the international system 34 VII. More than balance of payments 40 VIII. The first red herring: commodities 42 IX. The second red herring: reserves 43 X. Conclusion: the preconditions of policy reform 45 XI. References 48 VII

3 3. Lending to and for the Poor: How the IMF's Role Has Evolved l - ~- 51 James M. Boughton (IMF) I. Introduction 51 II. Lending to the poor 53 III. Lending for the poor 58 IV. Concluding observations 62 V. References The Case for a Universal Financial Institution 64 James M. Boughton (IMF) I. The evolution of the IMF and its membership 65 II. Financial classification of countries 72 III. The modern role of the IMF 74 IV. Concluding thoughts 78 V. References The Role of the IMF in Low-Income Countries: An Institutional Approach 81 Domenico Lombardi (Oxford University and Brookings Institution) I. Introduction 81 II. Understanding the role of the IMF in low-income member countries 82 III. Lending policies for low-income member countries 87 IV. Challenging aspects of IMF lending policies 99 V. IMF surveillance 101 VI. Challenging aspects of IMF surveillance 103 VII. Concluding remarks 105 VIII. References 106 Appendix 110 Part III. IMF Policies and Financing in Low-Income Countries 6. Financier or Facilitator? The Changing Role of the IMF in Low-Income Countries 113 Graham Bird (University of Surrey) and Dane Rowlands (Carleton University) I. Introduction 113 II. IMF arrangements in low-income countries 116 III. What motivates IMF programs in low-income countries? 117 IV. Balance of payments strategy in low-income countries: in pursuit of the optimum blend of adjustment and external financing 119

4 V. Assessing the IMF's role in pursuing the optimum blend 124 VI. Relaxing the external financing constraint: the IMF and foreign aid 125 VII. Is the role of the IMF in low-income countries changing? 129 VIII. Should the Fund retain an independent financing role in low-income countries? 131 IX. Concluding remarks 132 X. References The IMF's Approach to Macroeconomic Policy in Low-Income Countries 135 David Bevan (Oxford University) I. Introduction 135 II. The pros and cons of IMF loans to low-income countries 137 III. Towards a more flexible macroeconomic approach 144 IV. Debt sustainability 149 V. Technical assistance 153 VI. Conclusion 155 VII. References Signaling, Aid, and IMF Financial Arrangements for Low-Income Countries 158 Timothy Lane (Bank of Canada) I. Introduction 158 II. The IMF "seal of approval": rationale and implications 161 III. The financing gap 168 IV. Conclusions 171 V. References Debt Relief in Low-Income Countries: Background, Evolution, and Effects 175 Graham Bird (University of Surrey) and Robert Powell (IMF) I. Introduction 175 II. What are "debt problems"? And why do they arise? 176 III. How can debt problems be handled? 178 IV. The build-up of debt in low-income countries during the 1980s and 1990s: underlying causes 179 V. The response of creditors to low-income countries' debt: from rescheduling to relief 181 VI. Debt relief: the underlying issues applied to low-income countries 182 VII. The effects of debt relief on low-income countries 184 IX

5 VIII. The future of debt policy: the role of the IMF 188 IX. Concluding remarks 189 X. References } The Role and Performance of the IMF in Aid to Low-Income Countries: Lessons from Evaluation 191 Joanne Salop (Joanne Salop Consulting) I. Introduction 191 II. Accommodation of aid in PRGF program design 194 III. Forecasting, analysis, and mobilization of aid 197 IV. PRGF key features 199 V. External communications 202 VI. Conclusions and postscript 205 VII. References Participation in IMF Programs and Income Inequality 210 Patrick Conway (University of North Carolina) I. Introduction 210 II. Definitions, methodology, and data 213 III. Cross-sectional income inequality in developing and transition countries 214 IV. Measuring the intertemporal impact of participation in IMF programs on income inequality 218 V. Conclusions and extensions 219 VI. References 221 Appendix 222 Part IV. The Role of Low-Income Member Countries in the Governance of the IMF 12. Governance Matters: The IMF and Sub-Saharan Africa 229 Ngaire Woods (Oxford University) I. Introduction 229 II. Why does governance matter? 230 III. Setting priorities: the IMF's approach to Africa 231 IV. Implementing policies without responsiveness 236 V. To whom should the institution be accountable? 239 VI. References Proposing IMF Reforms for Low-Income Countries 247 Bessma Momani (University of Waterloo and Centre for International Governance Innovation) I. Introduction 247 II. Why do governance reform proposals have less output value to low-income countries? 248

6 III. What kinds of reforms would low-income countries benefit from at the IMF? 254 IV. Why the IMF reform debate is concerned more with governance than with functional reforms 257 V. References Rethinking the Governance of the International Monetary Fund 265 Abbas Mirakhor (IMF) and Iqbal Mehdi Zaidi (IMF) I. Introduction 265 II. Quotas, voice, and Rawls 269 III. Rawls's method 276 IV. The way forward 292 V. Conclusion 299 VI. References 300 Index 305 XI